Assume instead that cross uses the aging of accounts

Assignment Help Accounting Basics

Reference no: EM13576508

The A.T. Cross Company is well known for its Cross pens. The company recently reported the following amounts in its unadjusted trial balance as of December 31, 2010.

1.Assume Cross uses 1/2 of 1 percent of sales to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at December 31, 2010, for recording Bad Debt Expense. (TIP: The percentage of credit sales method directly calculates Bad Debt Expense.)

2.Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,005,000 of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 31, 2010, for recording bad debt expense. (TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment.)

3.Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,005,000 of Accounts Receivable will be uncollectible and unadjusted balance in Cross's Allowance for Doubtful Accounts at December 31, 2010, was a debit balance of $11,150. Prepare the adjusting journal entry required at December 31, 2010, for recording bad debt expense.

4.If one of Cross's main customers declared bankruptcy in 2012, what journal entry would be used to write off its $11,000 balance?

Reference no: EM13576508

Questions Cloud

High desert potteryworks makes a variety of pottery : high desert potteryworks makes a variety of pottery products that it sells to retailers such as home depot. the company

What was the required investment for goates companys : each of the following scenarios is independent. assume that all cash flows are after-tax cash flows. 1.southward

Hunter sobitson a waiter at the 20th hole restaurant worked : hunter sobitson a waiter at the 20th hole restaurant worked 43 12 hours this week and collected over 650 in tips. the

You are required to prepare a statement of cost to work out : ms modern comany ltd furnishes the following summary of trading and profit and loss account for the current year ending

Assume instead that cross uses the aging of accounts : the a.t. cross company is well known for its cross pens. the company recently reported the following amounts in its

Assuming no other transactions occurred between december 31 : at the end of 2012 extreme fitness has adjusted balances of 830000 in accounts receivable. on january 2 2013 the

Company a had a total deletable capitalized cost of 656000 : company a had a total deletable capitalized cost of 656000 for a mine acquired in early 2010. it was estimated that the

Prepare a statement of partnership liquidation indicating : prepare a statement of partnership liquidation indicating a the sale of assets and division of loss b the payment of

If the company decides to call the convertible bonds and : rob stevens is the chief executive officer of isner construction inc. and owns 750000 shares of stock. the company

User Account

All Pages